Stock of the Day

January 29, 2020

Goodyear Tire & Rubber (GT)

$7.29
+$0.19 (+2.7%)
Market Cap: $2.10B

About Goodyear Tire & Rubber

Goodyear Tire & Rubber Co. engages in the development, manufacture, distribution, and sale of tires. It operates through the following geographical segments: Americas, Europe, Middle East, and Africa, and Asia Pacific. The Americas segment is involved in the development, manufacture, distribution, and sale of tires and related products and services in North, Central, and South America. The Europe, Middle East, and Africa segment focuses on the development, manufacture, distribution, and sale of tires for automobiles, trucks, buses, aircraft, motorcycles, earthmoving, mining, and industrial equipment throughout Europe, the Middle East, and Africa. The Asia Pacific segment refers to the development, manufacture, distribution, and sales of tires for automobiles, trucks, buses, aircraft, farm, earthmoving, mining, and industrial equipment throughout the Asia Pacific region. The company was founded by Frank A. Seiberling on August 29, 1898 and is headquartered in Akron, OH.

Today's Trend

Goodyear Tire & Rubber Company (NASDAQ: GT) shares have been under pressure as investors react to a mix of mixed analyst commentary and concerns about margin headwinds.

  • JPMorgan reaffirmed its Overweight rating on Goodyear and kept a $10 price target, implying meaningful upside from current levels. Benzinga report on JPMorgan rating
  • Deutsche Bank downgraded Goodyear to Hold and cut its price target to $7 from $9, citing raw material and cost pressures. MSN report on Deutsche Bank downgrade
  • Additional commentary highlighted ongoing profitability and valuation concerns after Goodyear’s Q1 loss, with investors still watching whether cost cuts and product performance can offset weak margins. Yahoo Finance valuation article
  • Short-interest data showed no meaningful change, so it is unlikely to be a major driver of trading today.

Overall, GT appears to be trading lower because the Deutsche Bank downgrade and reduced price target are outweighing the more bullish JPMorgan view. Investors are also focused on whether Goodyear can improve margins amid higher input costs and a still-challenged earnings outlook.

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